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William sold Section 1245 property for $25,000 in 2012. The property cost $35,000 when it was purchased 5-years ago. The depreciation claimed on the property was $16,000. For all parts, show your math: (a) Calculate the adjusted basis of the property. (b) Calculate the recomputed basis of the property. (c) Calculate the amount of ordinary income under Section 1245. (d) Calculate the Section 1231 gain.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9161300

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